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HomeMy WebLinkAboutOrdinance No. 0927(s` CITY OF MEDINA, WASHINGTON ORDINANCE NO. 927 R AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON, AMENDING SECTION 6.04.030 OF THE MEDINA MUNICIPAL CODE ADOPTING A FOUR PERCENT UTILITY TAX RATE AND EXTENDING THE UTILITY TAX RATE REDUCTION FROM THREE PERCENT TO ZERO PERCENT TO JANUARY 31, 2017; AND PROVIDING AN EFFECTIVE DATE OF JANUARY 13, 2016 WHEREAS, the City ; of Medina is classified as a non -charter cede city under title 35A RCW; and WHEREAS, RCW 35A.21.150 provides that a code city shall have all of the powers which any city of any class may have; and WHEREAS, pursuant to Washington state law, code cities are authorized to impose taxes upon gross revenues earned by utility and service providers within their jurisdictional boundaries; and WHEREAS, the City Council approved Ordinance No; 351, on November 8, 2010, adopting a three percent utilitytax rate upon gross revenues derived from telephone and telegraph businesses; electric utilities, natural gas, sewer utility, solid waste and cable service operators, which utility tax is codified at Chapter 5.04 of the Medina Municipal Cade; and WHEREAS, the City Council approved Ordinance No. 912 reducing the utility tax rate upon gross revenues from four percent to three percent, but reduced the three percent annual tax rate to zero on January 31, 2015; and WHEREAS, the City Council desires to amend the City Code relating to the utility tax rate and the limitation of reducing the annual tax rate to zero on January 31, 2016 by increasing the utility tax rate to four percent and by extending the time period for <reduction of the tax rate to zero until January 31, 017; and WHEREAS, state law provides at RCW 35.21.355 that a change in the rate of tax it imposes on the privilege of conducting an electrical energy, natural gas, or telephone business may not take effect before the expiration of: sixty days following the enactment of the ordinance establishing the change; and NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ;MEDINA, WASHINGTON, DO ORDAIN AS FOLLOWS Section 1 Amendment of Section 5.04.030. Section 5.04.030 of the Medina Municipal Code is hereby amended to read as follows: There is levied upon and there shall be collected from every person engaged in carrying ;on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city the tax for the privilege of so doing business as hereinafter defined. A. Upon every person engaging in or carrying on telephone business there shall be levied a tax equal to ((three)) four percent of the total gross income derived from the operation of such business in the city. In computing the tax imposed under this subsection, there shall be Ordinance No. 927 Page 1 of Section 2. Seerabilty. If any section, sentence, clause, or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of any other section, sentence, clause, or phrase of this ordinance. Section 3. Effective date. This ordinance shall take effect on January 13, 2016. ENACTED BY THE CITY COUNCIL ON THIS'9TH DAY OF NOVEMBER, 2016 AND SIGNED IN AUTHENTICATION OF ITS PASSAGE ON THE 9T" DAY OF NOVEMBE , 2015. Patrick Boyd, Mayor Approved as to form: Attest: 1 Kathleen J. N gga ity Attorney Aimee Kellerman, City Clerk Porter Fester Rorick'L.LP ti f; s Y t, f tt; u* r } v f ;4 } i t Ordinance No. 927 Page 3 of 3